FAC Explorer

Audit 322270

FY End
2024-03-31
Total Expended
$1.40M
Findings
4
Programs
2
Organization: Stoddard CO Public Water District #4 (MO)
Year: 2024 Accepted: 2024-09-30
Auditor: Coffman and Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499412 2024-001 Significant Deficiency Yes ABI
499413 2024-002 Significant Deficiency Yes A
1075854 2024-001 Significant Deficiency Yes ABI
1075855 2024-002 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.15M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $247,000 - 0

Contacts

Name Title Type
PKZZYT1MV515 Clarence Smith Auditee
5739903221 Betsy Mays Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Stoddard County PWSD #4 under programs of the federal government for the year ended March 31, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Stoddard County PWSD #4, it is not intended to and does not present the financial position, changes in net position, or changes in cash flows of Stoddard County PWSD #4.
Title: Balances of Loan and Loan Guarantee Programs Outstanding Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The District has received funding for construction of a water system. Loans outstanding at the beginning of the year and loans received during the year are included in the schedule. The balance of the loans outstanding as of March 31, 2024 consisted of: 10.760, Water and Wates Disposal Systems for Rural Communities $2,255,384.81.

Finding Details

Finding 2024-001
Criteria or Specific Requirement: In any system of internal control, one primary goal is adequate segregation of duties. Statement of Condition: The District has potentially conflicting duties in its revenue, cash receipts and accounts receivable and purchases, cash disbursements and accounts payable cycles which impact the financial statements. Statement of Cause: The size and budget constraints of the District limit the application of adequate segregation of duties. Statement of Effect or Potential Effect: Possible material misstatements in the financial statements, possible unauthorized, unallowable or unallowed expenditures, or material misappropriations of assets due to error or fraud could occur and not be prevented or detected in a timely manner. Perspective Information: An understanding of the District's internal controls was obtained through observation, inquiry and walkthroughs of key areas related to the financial statements. Identification of Repeat Findings: This is a repeat finding for financial statement purposes (2023-01) Recommendation: Management should periodically evaluate the costs versus the benefits of further segregation of duties or addition of monitoring or other compensating controls and implement those changes it deems appropriate for which benefits are determined to exceed costs. Views of Responsible Officials and Planned Corrective Actions: Management realizes the duties are reevaluated regularly and with the size of the District it is not feasible to add additional employees. They believe that they have adequate safeguards against material misstatements; however, they will continue to strive to improve this deficiency. Questioned Costs: None
Finding 2024-002
Criteria or Specific Requirement: The District is responsible for meeting annual funding requirements. Statement of Condition: Annual replacement and extension fund deposits were underfunded by $23,749.38. Statement of Cause: Lack of oversight from the Board allowed noncompliance to occur. In addition, a cash deficit also reduced the ability to make required deposits. Statement of Effect or Potential Effect: The District did not comply with requirements regarding the replacement and extension fund account. Perspective Information: An understanding of the District's internal controls was obtained through observation, inquiry and walkthroughs of key areas related to the financial statements. Identification of Repeat Findings: This is a repeat finding for financial statement purposes. (2023-02) Recommendation: The Board should ensure that the manager deposits appropriate funds into the replacement and extension fund account and monitors the balance in relation to the requirements set forth in the loan agreement. A responsible member of the Board should be assigned the responsibility for reviewing deposit requirements and compliance for the replacement and extension fund account. Views of Responsible Officials and Planned Corrective Actions: The Board agrees with the finding and is responsible for evaluating the condition of the replacement and extension fund account. The funding of the account will be more closely controlled. A responsible member of the Board will be assigned to oversight responsibilities. Questioned Costs: None
Finding 2024-001
Criteria or Specific Requirement: In any system of internal control, one primary goal is adequate segregation of duties. Statement of Condition: The District has potentially conflicting duties in its revenue, cash receipts and accounts receivable and purchases, cash disbursements and accounts payable cycles which impact the financial statements. Statement of Cause: The size and budget constraints of the District limit the application of adequate segregation of duties. Statement of Effect or Potential Effect: Possible material misstatements in the financial statements, possible unauthorized, unallowable or unallowed expenditures, or material misappropriations of assets due to error or fraud could occur and not be prevented or detected in a timely manner. Perspective Information: An understanding of the District's internal controls was obtained through observation, inquiry and walkthroughs of key areas related to the financial statements. Identification of Repeat Findings: This is a repeat finding for financial statement purposes (2023-01) Recommendation: Management should periodically evaluate the costs versus the benefits of further segregation of duties or addition of monitoring or other compensating controls and implement those changes it deems appropriate for which benefits are determined to exceed costs. Views of Responsible Officials and Planned Corrective Actions: Management realizes the duties are reevaluated regularly and with the size of the District it is not feasible to add additional employees. They believe that they have adequate safeguards against material misstatements; however, they will continue to strive to improve this deficiency. Questioned Costs: None
Finding 2024-002
Criteria or Specific Requirement: The District is responsible for meeting annual funding requirements. Statement of Condition: Annual replacement and extension fund deposits were underfunded by $23,749.38. Statement of Cause: Lack of oversight from the Board allowed noncompliance to occur. In addition, a cash deficit also reduced the ability to make required deposits. Statement of Effect or Potential Effect: The District did not comply with requirements regarding the replacement and extension fund account. Perspective Information: An understanding of the District's internal controls was obtained through observation, inquiry and walkthroughs of key areas related to the financial statements. Identification of Repeat Findings: This is a repeat finding for financial statement purposes. (2023-02) Recommendation: The Board should ensure that the manager deposits appropriate funds into the replacement and extension fund account and monitors the balance in relation to the requirements set forth in the loan agreement. A responsible member of the Board should be assigned the responsibility for reviewing deposit requirements and compliance for the replacement and extension fund account. Views of Responsible Officials and Planned Corrective Actions: The Board agrees with the finding and is responsible for evaluating the condition of the replacement and extension fund account. The funding of the account will be more closely controlled. A responsible member of the Board will be assigned to oversight responsibilities. Questioned Costs: None